Microcase
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International political economy, in its most basic form, is the interaction of political and economic power. Let’s explore some of the key economic issues in international relations, starting with differences in standards of living.
CLICK DATA FILE:
GLOBAL02
CLICK TASK:
Mapping
SELECT VARIABLE 1:
GDP/CAP
SELECT VARIABLE 2:
THREEWORLD
CLICK VIEW:
Map
CLICK:
[Continue]
1. The United States has one of the highest standards of living in the world. Which region of the world includes the most countries with a similar standard of living? (Africa, Asia, Europe, South America, or The Middle East)
2. True or False: Countries that are classified as First World tend to have the lowest gross domestic product per capita (GDP/CAP).
CLICK:
VARIABLES
SELECT VARIABLE 1:
INEQUALITY
SELECT VARIABLE 2:
GDP/CAP
CLICK VIEW:
Map
CLICK:
[Continue]
3. Countries in _____ appear to have, overall, the lowest levels of inequality. (Africa, Asia, Europe, or South America)
4.
True or False
: Countries with low GDP per capita tend to have relatively more inequality than countries with high GDP per capita.
Many countries have accumulated large amounts of debt. Let’s examine this issue.
CLICK:
VARIABLES
SELECT VARIABLE 1:
EXT. DEBT
SELECT VARIABLE 2:
GDP/CAP
CLICK VIEW:
Alphabetical Table
CLICK:
[Continue]
5. Locate the world Rankings for external debt and GDP/Capita for the following countries:
Country
Debt Ranking
GDP/Capita Ranking
Australia
Brazil
France
India
6. Which of the above are likely to have the most difficulties paying their external debt and why?
Many poor countries rely heavily on exports of primary goods to raise international capital, and to pay their external debt. Let’s explore what has happened with the prices of primary and manufactured goods recently.
CLICK:
DATA FILES
CLICK DATA FILE:
HISTORICAL
CLICK TASK:
Historical Trends
SELECT VARIABLE 1:
PRICE PRIM
SELECT VARIABLE 2:
PRICE SEC
CLICK:
[Continue]
7.
True or False
: Since 1980 the prices of primary goods have increased by more than 100 percent.
8. Since 1980, the prices of manufactured goods have _____.
a. increased, but by less than 10 percent.
b. increased by almost 70 percent.
c. decreased by nearly 50 percent.
d. been extremely volatile, but have returned to their 1980 levels.
9.
True or False
: If the objectives are to improve standards of living and to generate income to pay external debt, poor countries should concentrate primarily on the export of primary rather than manufactured goods.
Foreign aid is another possible method of addressing both debt problems and inequalities in wealth around the world, and the United States is one of the world’s most important donor countries.
CLICK:
VARIABLES
SELECT VARIABLE 1:
USA
CLICK:
[Continue]
10.
True or False
: Since 1980 the amount of annual aid provided by the United States has declined.
11. What key event in 1989 helps to explain the change in foreign aid that occurred in that year?
CLICK:
DATA FILES
CLICK DATA FILE:
GSS98
CLICK TASK:
Univariate
SELECT PRIMARY VARIABLE:
For. Aid $
CLICK:
[Continue]
12.
True or False
: The majority of Americans support increases in foreign aid.
13. How might aid be used to help a country achieve its foreign policy objectives?
Investments by foreign businesses and individuals are another possible way to provide economic opportunity for poor countries. Let’s explore this issue.
CLICK:
DATA FILES
CLICK DATA FILE:
HISTORICAL
CLICK TASK:
Historical Trend
SELECT VARIABLE 1:
FDI LDC
CLICK:
[Continue]
14. In 1994, foreign direct investment in poor countries was approximately _____ billion dollars. (29, 41, 55, or 84)
15.
True or False
: Foreign direct investment in poor countries has declined over the last two decades.
Many analysts argue that trade is the key to developing economically. Specifically, the argument is that countries will increase their overall economic well-being by promoting exports. Opening a country’s borders to trade is often controversial; what one country exports, another imports.
CLICK:
DATA FILES
CLICK DATA FILE:
ISSP1995
CLICK TASK:
Univariate
SELECT PRIMARY VARIABLE:
LIMIT.IMPORT
CLICK:
[Continue]
16. What percent of people across the world either "strongly agree" or "agree" that imports should be restricted to protect their national economies?
%
CLICK:
DATA FILES
CLICK DATA FILE:
GLOBAL02
CLICK TASK:
Mapping
SELECT VARIABLE 1:
GDP
SELECT VARIABLE 2:
EXPORTS
CLICK VIEW:
Alphabetical Table
CLICK:
[Continue]
17. Find the following countries to locate their Rankings for world GDP and Exports.
Country
GDP Ranking
Exports Ranking
United States
Canada
Germany
Japan
18. Based on the examples above, it appears that each country’s GDP Rank is _____ than its exports Ranking. (much higher than, much lower than, or about the same as)
19. Now let’s explore some other examples. Locate the Rankings for both gross domestic product and exports for Brazil and China.
Country
GDP Ranking
Exports
China
Brazil
20. What might explain the differences in the Rankings for China and Brazil, on the one hand, and Canada, Germany, Japan, and the United States, on the other?
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